What does DRA mean in LAW & LEGAL

The Deficit Reduction Act of 2005 (DRA) is a federal law enacted in February 2006. It was designed to address the nation's deficit by reducing overall expenditures and making changes to existing regulations and policy provisions regarding Medicaid payments and services.

The DRA reduces the deficit by restricting funding for certain programs and adjusting how much the government pays states for eligible Medicaid services provided under their program. The act also adjusts federal revenue sources and increases taxes on certain individuals in order to finance these efforts.

The DRA makes several changes to existing law, including changing how states reimburse providers for Medicaid services, limiting access to Medicaid prescription drugs, increasing funding for state Children's Health Insurance Programs (CHIP), adjusting eligibility requirements, and providing incentives for states to increase foster care placement options and reduce out-of-home placement expenses.

States are required to comply with many aspects of the DRA, such as providing proof of compliance with federal Medication performance standards in order to receive federal matching funds under Medicaid and CHIP, implementing policies related to eligibility verification processes, establishing procedures that ensure newly enrolled beneficiaries meet eligibility requirements before receiving benefits, requiring all providers participating in Medicaid programs who received advance payments or participated in fee-for-service arrangements submit claims within specified time limits, creating standardized data collection systems in order to track patient care outcomes, submitting reports on quarterly basis regarding fiscal integrity reviews findings relating to billing practices of their health care providers.

Compliance with all aspects of this law falls under the jurisdiction of both state and federal entities. Federal entities include organizations such as Centers for Medicare & Medicaid Services (CMS), Office of Inspector General (OIG), Department of Health & Human Services (HHS). State entities include Title XIX agencies that administer state's medical assistance programs, Departments of Health or Human Services & other state agencies designated by Governor's office as appropriate bodies responsible for enforcing compliance with DRA mandates.